Be Sure To Check Out Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) Before It Goes Ex-Dividend
It looks like Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) is about to go ex-dividend in the next 3 days. You will need to purchase shares before the 2nd of March to receive the dividend, which will be paid on the 16th of March.
Peoples Bancorp of North Carolina's next dividend payment will be US$0.15 per share, and in the last 12 months, the company paid a total of US$0.71 per share. Based on the last year's worth of payments, Peoples Bancorp of North Carolina has a trailing yield of 2.3% on the current stock price of $26.4. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! We need to see whether the dividend is covered by earnings and if it's growing.
Check out our latest analysis for Peoples Bancorp of North Carolina
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Peoples Bancorp of North Carolina is paying out just 24% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events.
Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.
Have Earnings And Dividends Been Growing?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. With that in mind, we're encouraged by the steady growth at Peoples Bancorp of North Carolina, with earnings per share up 9.3% on average over the last five years.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, ten years ago, Peoples Bancorp of North Carolina has lifted its dividend by approximately 9.0% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.
Final Takeaway
From a dividend perspective, should investors buy or avoid Peoples Bancorp of North Carolina? Peoples Bancorp of North Carolina has seen its earnings per share grow slowly in recent years, and the company reinvests more than half of its profits in the business, which generally bodes well for its future prospects. In summary, Peoples Bancorp of North Carolina appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.
Want to learn more about Peoples Bancorp of North Carolina? Here's a visualisation of its historical rate of revenue and earnings growth.
A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
